At LIIF, we are committed to centering community voices as the foundation for driving sustainable change in the early care and education (ECE) sector. Providers, families and children each offer valuable insights into the challenges they face, and their experiences are integral to shaping our work. By listening to and prioritizing their voices, we gain a deeper understanding of the unique needs within communities, allowing us to more effectively address barriers and ensure our resources create long-term, sustainable solutions.
Centering Community Voices
Home-based child care providers such as Billie Walker, founder of Westside Early Learning Family Childcare, exemplify the challenges and aspirations of ECE providers striving to make a difference in their communities. Billie’s center plays a critical role in supporting children’s social and emotional development, providing high-quality child care, nutritious meals, a positive environment and the essential tools for children to thrive. LIIF partnered with Georgia Early Education Alliance for Ready Students (GEEARS), the Community Foundation of Greater Atlanta, Reinvestment Fund and the Professional Family Child Care Alliance of Georgia (PFCCAG) to administer funds through the Promise All Atlanta Children Thrive (PAACT) Repair and Renovations grant program. This initiative, funded by the City of Atlanta’s Mayor’s Office, provided up to $75,000 for repair and renovation projects for child care providers, including a new roof, HVAC system, floors and cabinets for Billie’s center.
Like many providers in densely urban areas, services are in high demand, creating a need for greater access to capital, affordable space and support — highlighting the importance of LIIF’s focus on addressing these gaps. As we continue to center the voices of providers, our National Early Care and Education Practitioners Advisory Committee (NEPAC), launched in 2022, allows us to identify best practices around policy issues, climate-mitigation solutions and the co-location of child care in affordable housing developments. NEPAC members represent experienced providers and ECE leaders, such as D.C. Early Learning Collaborative’s Cassandra Nelson, who has dedicated nearly 30 years to offering high-quality, affordable child care services; and Cynthia Davis of Kings and Queens Child Care Center, who works with local government officials to advocate for equal pay for providers across Washington, D.C.
Our Impact
In Fiscal Year 2024, LIIF invested $133 million in capital to ECE programs across the country, with $9.5 million managed by LIIF’s new Capacity Building team in Oregon — $3 million of which was provided as a loan. The team is actively working in Oregon, as well as in Atlanta and Harris County, Texas, which includes Greater Houston. Our investments have resulted in stronger, more-resilient ECE ecosystems that prioritize the needs of children and families, fostering an environment where every child can grow, learn and succeed.
Through partnerships with child care providers across various regions, LIIF’s financial support has played a pivotal role in expanding access to quality care, especially in areas where the demand for affordable ECE far exceeds the available supply. As of June 30, 2024, we served 2,362 centers and family child care (FCC) homes, compared to 1,798 in Fiscal Year 2023 — an increase of 31%. This commitment to centering community voices has not only allowed us to invest in the physical infrastructure of child care centers but has also empowered local providers with the tools and resources needed to thrive.
How Our ECE Business Plan Supports the Sector
As we continue to structure our ECE business with a strategic focus on facilities funds management, capacity building and advisory and policy services, we remain dedicated to empowering providers, strengthening communities and ensuring that quality, affordable child care is accessible to all families, particularly in under-resourced areas. Through our facilities fund management, we ensure that providers such as Billie have access to the capital necessary to develop and renovate high-quality, affordable child care spaces. Recently, 3,777 home- and center-based early care and education providers were awarded $200.5 million from the Child Care and Development Infrastructure Grant Program (IGP), administered by the California Department of Social Services (CDSS) and managed by LIIF. This is the largest deployment of ECE facilities grant funds of its kind in the United States.
In the first year of BuildUp Oregon, a collaborative initiative with Craft3, Micro Enterprise Services of Oregon and Network for Oregon Affordable Housing, we approved $9.5 million in funds across 23 sites, creating 302 new child care slots. As the leading national community development financial institution (CDFI) in the ECE sector, LIIF is committed to ensuring that these investments lead to meaningful improvements for children, families and communities. Our commitment to capacity building empowers providers with technical assistance, training and resources to strengthen their operations and improve services. In Fiscal Year 2024, our efforts impacted the lives of 51,000 students, with over 8,000 hours dedicated to supporting providers through culturally responsive technical assistance. With our deep understanding of community needs and expertise in financing and partnerships, we bridge the gap between capital and the communities we serve. By integrating these efforts, we continue to drive sustainable, lasting change in the ECE sector, helping providers build a foundation for healthier, more equitable communities.
LIIF’s advisory and policy services offer critical research, planning and support to local governments, nonprofits and community organizations, helping them develop strategies tailored to the unique needs of their communities. Across Harris County, Texas, Georgia and New Mexico, our team is working with state and local leaders to understand child care supply and demand, child care facilities needs, and the impact of local and state policy on building the supply of child care. In a recent report, we examined climate risks in Harris County, finding that a staggering 99.5% of the county’s 2,613 child care facilities are in areas with climate risks exceeding the national average. Furthermore, over half of the county’s ECE supply (104,000 seats) faces disaster risk above the 90th percentile nationally, yet many providers lack the financial resources to weatherize their facilities, as revealed by a survey conducted in May 2024.
Financial Barriers in Under-Resourced Communities
We recognize that the child care landscape has been shaped by centuries of racial and gender discrimination, which has directly influenced the allocation of resources, the support available to providers and the creation of safe, healthy environments for children. Today, with the rising cost of rent, FCC centers are at risk of losing their homes. At LIIF, we are committed to ensuring that FCC providers remain rooted in their communities, serving both their own families and the children for whom they care. Recently, Norma Zavaleta, a longtime child care provider in San Francisco’s Portola neighborhood, became LIIF’s first FCC Facility Acquisition client. With a $100,000 grant offered in partnership with the Department of Early Childhood and facilitated by LIIF, Norma was able to purchase a home and expand her small business, ensuring continued access to affordable, high-quality care for infants, toddlers and preschoolers. This move preserves eight child care spaces, provides stability for her program, supports families and creates two new staff positions.
Looking Ahead
As we move forward, LIIF will continue to deepen our commitment to advancing sustainability of the ECE sector. While changes in funding may impact resource allocation, LIIF’s dedication to supporting providers, families and communities remains steadfast. We will continue focusing on ensuring that child care providers in historically underserved communities have access to the capital, small-business supports and technical assistance they need to thrive.
In the coming year, LIIF will prioritize long-term solutions that address critical barriers to quality ECE, including access to affordable space, climate resilience, and the growing need for weatherization and disaster preparedness. Our expanded advisory services will help communities navigate these shifts and develop strategies to secure and sustain funding for child care services. By continuing to provide both financial and strategic support, LIIF will remain a key partner in building a more resilient ECE sector, empowering local providers to create safe, nurturing environments where all children can grow, learn and succeed.